New Jersey to forgive thousands of families' medical debt. Here's how to tell if you qualify.
TRENTON, N.J. (CBS) — Thousands of New Jersey families can breathe a little easier after Gov. Phil Murphy announced his administration will eliminate some, if not all, of certain families' medical debt.
Murphy's administration will relieve 17,905 residents owing $61.6 million to Prime Healthcare hospitals as part of a collective effort between the state of New Jersey's American Rescue Plan funds and Undue Medical Debt.
The state will also relieve 31,748 New Jersey residents owing more than $38.4 million to secondary debt market providers, including collections agencies.
Murphy said this is part of a major initiative to make health care more affordable and accessible for New Jerseyans.
"When someone is sick or injured, they should be able to focus on what matters most — getting better — rather than worrying about how they will pay for the life-saving care and services rendered to them. New Jerseyans should not have to scrimp and save to ensure their basic health care needs are met, or to pay down lofty medical debts resulting from tragic accidents or devastating diagnoses," Murphy said.
Murphy's announcement comes weeks after the Louisa Carman Medical Debt Relief Act was signed. The act protects New Jersey families from accruing medical debt against predatory medical debt collections and prohibits medical debt reporting to credit reporting agencies.
"Medical debt accumulates very quickly and can follow a person for decades," Murphy said. "With this strategic investment and our partnership with Undue, we are wiping the slate clean for thousands of New Jersey families, eliminating their debt, and making a real, tangible impact on their lives."
How will I know if my debt is getting relieved?
According to Gov. Phil Murphy's announcement, those who qualify for medical debt relief are either four times or below the federal poverty level or have medical debts equivalent to 5% or more of their annual income.
There is no application process for this one-time medical debt abolishment.
Anyone benefitting from the medical debt relief will receive a letter from Undue Medical Debt in the mail starting the week of Aug. 19.